Please see our last post, titled A Late Start + Fear of the Unlikely, for background thoughts. Even we are surprised by how fast our Net Worth is growing, even with this long-running bull market. While we highly recommend you read all our thoughts, in a nutshell… a high automated savings rate, low expenses, hard work, and consistently doing these over and over = the results you see below.
Our Net Worth at the end of June 2021 was… $425,037.11! That’s up $71,938 YTD!!!
$425k was our goal by the end of 2021, and we reached it mid-way through! Even though there is a trend up over the past 6 months above, you’ll notice several periods where we were flat or even down. Several of these lasted for a month. Even when the market was down, we were still contributing thousands of dollars into our retirement accounts and other investments.
The glass half empty says “the market is scary and I’ve ‘lost’ money, SELL!!!!”
The glass half full says “buy and hold for the long term, and hey, the market is on sale!”
If the second half of 2021 is similar to the first half, we will be very close to $500k Net Worth (which was our 2022 goal). Many are fearful of inflation, and many are fearful of deflation. Couldn’t tell you which one will happen, or in what order. Our plan is buy and hold with diversification. We own a home with a low interest rate in a growing market. We buy index funds and bond funds in Traditional, Roth, and brokerage accounts. We have cash. While we will continue to invest a large portion of our income automatically, we do want to build our cash reserves higher. That’s it.
Are you just starting out? Read… A Late Start + Fear of the Unlikely for background thoughts.